Friday, September 7, 2007

property market is overvalued by as much as 30 per cent

Sun is setting on Spanish property boom

Hundreds of estate agencies across southern Spain have gone out of business in a trend that experts say signals the end of a buoyant housing market that has fuelled the country's economy over the past decade.

Posted by sold 2 rent 1 @ 01:41 PM (896 views)
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7 thoughts on “property market is overvalued by as much as 30 per cent

  • waitingfor hpc says:

    good

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  • dohousescrashinthewoods says:

    Keep an eye out for estate agents dsapearing over her soon then? Does anyone remember if Foxtons was sold in the end? I remember them talking about it. Struck me, given the character of the company, they wanted to rinse it for cash before the crash.

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  • planning4acrash says:

    Foxtons was sold. The owner kept the American business tho apparently. I’d personally have sold the whole lot, or, he went to market too late to find a buyer for the American bit, but sold in London just on time.

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  • “During the last decade vast swathes of the Spanish coastline have been developed in a construction boom that has made the nation one of the fastest growing economies in Europe. Spanish house prices have risen by more than 200 per cent in that period”

    Eh?! What happened to the ol’ supply and demand argument? Surely such a huge increase in supply of houses would have cause prices to drop in the same period.

    “In a bleak assessment of Spain’s prospects, the Socialist government admitted that the country faced an uncertain future. We face a period of uncertainty and lack of clarity, said Pedro Solbes, the finance minister.”

    Well Pedro, maybe you shouldn’t have put all your eggs in one basket by building an economy based on property speculation. But don’t worry – the UK will join you soon…

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  • Hunt? Smart man. ’81 he started wasn’t it.

    As long as he kept it legal – which sometimes you dont find out for a while … then if putting up plasma screens, making your estate agents front trendier than the local wine bar, and employing staff who make the local quant. nerds feel inadequate if they dont spend the top price. “Well if you can’t afford it, i can show you something in a lower price bracket” (“Not can’t Maam. WON’T”)

    He probably did. The rules on fluffing up house prices seem to be much laxer than stock. Although that gets out of control aswell – see dotcom boom – but at least there might be some recourse.

    Personally i dont like the business, but he got some clever techniques going in there. Clever versus the people who were buying from him anyway.

    Of course you need nothing more to tell you a housing bubble is in place than if you can’t distinguish the Estate Agents from a spaceport.

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  • crash bandicoot says:

    “Demand is 10 per cent lower than it was a year ago and people are having to sell their property for less than they hoped.”

    How sad, when they are selling it for 10% less than they paid for it I’ll break my violin out.

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  • The reality behind the headlines is that virtually all Spanish property is overvalued by at least 30% and bigger falls are coming over the winter months.

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